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BSE: Sensex changes: Tata Motors replaces Lab Dr Reddy in the index, effective from December 19 | Rare Techy


The BSE Stock Exchange today announced that Tata Motors will automatically replace the Dr Reddy Laboratories pharmaceutical stock in the Sensex from next month.

With effect from December 19, Dr Reddy’s will not be part of the benchmark index, according to the Asia Index run by BSE and S&P Dow Jones.

The rejig is part of a periodic shake-up done in the 30-stock index, which includes several high-value Indian companies.

The exchange also announced a rejig in the BSE 100 index, which will lead to the departure of Adani Total Gas and HPCL. Adani Power and IHCL will make it into the index.

The Sensex Next 50 index, which has India’s 50 largest and most liquid stocks after the constituent Sensex 50, will also witness the exit of Adani Total Gas and HPCL and the entry of Adani Power and IHCL.

The exchange said there would be no change to the S&P BSE Sensex 50 and S&P BSE Bankex indices.


Designed to measure the performance of the 30 largest, most liquid and financially sound companies across major sectors of the Indian economy listed on the BSE, the Sensex is India’s most widely tracked bellwether index.

Launched on January 1, 1986, the Sensex covers more than 40% of the total market capitalization of the universe listed on the BSE. Based on a floating-adjusted market weighting methodology, the index is rebalanced twice each year – in June and December. The top 10 Sensex constituents by index weight include Reliance Industries, HDFC Bank, ICICI Bank, Infosys, HDFC, TCS, ITC, Kotak Mahindra Bank, Axis Bank and L&T.

Nuvama Wealth Management estimates that the Sensex crash will result in inflows of $124 million to

and an outflow of $90 million from Dr. Reddy’s.

“Among all broadly tracked passive indices, the S&P Sensex has the least passive tracking and we rule out the possibility of significant price action due to this announcement,” said Abhilash Pagaria, Nuvama Alternative & Quantitative Research.


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